Eurozone Inflation Pegs Back the EUR Ahead of the FED Projections

After a relatively quiet economic calendar through the Asian session, the focus was back on the Eurozone.

Finalized March inflation figures for the Eurozone were in focus.

Eurozone Inflation

In February, the annual core rate of inflation softened from 1.4% to 1.1%, which was in line with prelim figures.

The annual rate of inflation held steady at 0.9%, which was in line with prelim figures. This was down from an annual rate of inflation of 1.2% in February 2020, however.

Month-on-month, consumer prices increased by 0.2% in February, which was in line with forecasts. In January, consumer prices had also risen by 0.2%.

According to Eurostat,

• Greece (-1.9%), Slovenia (-1.1%), and Cyprus (-0.9%) registered the lowest annual rates of inflation.
• In February, the highest contribution came from services (+55 percentage points), followed by food, alcohol, & tobacco (+0.29 pp).

Market Impact

Ahead of today’s stats, it was a mixed start for the EUR. Early in the day, the EUR had fallen to a current day low $1.1886 before rising to a current day high $1.19166..

In response to the inflation figures, the EUR fell from 1.19105 to a post-stat low $1.19067.

At the time of writing, the EUR was up by 0.06% to $1.19081.

Next Up

U.S housing sector stats and more importantly, the FED monetary policy decision and projections.

Don’t expect too much influence from the housing sector numbers, however.